Financial Planning and Management Summary ▲ Financial planning links the goals a business wants to achieve in the future and the resources it will need to achieve these goals. It is also concerned with evaluating the financial resource of a business. Strategic financial management is about setting the goals throughout the business and deciding what resources will be needed to achieve these goals. The main objective of financial management is to properly account for the income and expenditure of a business in order to maximise the value of that business to it’s owners. To achieve this manager's must balance the following objectives: Liquidity Profitability Efficiency Growth Return on capital The financial planning cycle either will be part of the business plan or will arise from the business plan. The financial planning cycle is a continuous cycle of activities that take place in the financial area as the business plan is implemented. These activities include: Addressing the present financial position Determining the financial elements of the business plan Developing budgets Estimating cash flows preparing financial reports interpreting financial reports maintaining record systems planning financial controls Minimising financial risks and losses. ▲ Financial markets are important to business because such markets provide access to funds needed for growth and for financing aspects of operations. There are two main financial markets: the money market and the capital market. The major participants in financial markets are: banks, which are the largest merchant banks financial and insurance companies superannuation/mutu... ... middle of paper ... ... Inventory- is any stored resource such as work in progress, finished goods or raw materials that a business has. Operating cycle- describes the transaction of a firm’s working capital from cash to inventories to receivables and back to cash. Accounts payable- are the business debts, resulting from the purchase of goods from suppliers, which have not yet been paid. Just-in-time- [JIT] describes an inventory control system in which the materials needed in production arrive just prior to use and do not require storage. Cost centre- is a unit within a business that is held responsible for costs in its area. Audit- is an official examination of accounts to establish their truth and fairness. Ethics- is a system of moral principles that involves high standards, and socially accepted standards of conduct. ▲ ▲
This memorandum shall provide an in depth analysis of Target Corporation’s performance for the most current for the year 2014. To obtain a better understanding of Target Corporation’s performance the following categories shall be addressed: Preliminary analytical procedures, Accounting policy efficiency and reliability, Evaluation of Disclosure Controls, Evaluating Company’s technology system and its Risks, Substantive Procedures, Payout ratio in the Target Corporation financials, Fraud Considerations and Extended Procedures.
Inventory - The money that the system has invested in purchasing things which it intends to sell.
Shear Essence Salon will start to conduct business in August of 2014, just before the school seasons starts and one of the busiest months for salons. Sales are based on the total market potential (TMP) for clients that live in Jackson County, Oregon. Based on the population of 208,545 and the amount of times men and women get their hair cut per year the TMP is 2,248,393. Shear Essence sales potential after adjusting the guidelines to include all people five and over (94.2%) and all incomes over the poverty level (83.4%) the total sales potential (SP) was 1,766,401. Annual sales forecast (SF) was divided amount the salons in the Jackson County area and Shear Essence’s sales forecast portion was .005067 percent of the annual sales forecast for a total of 8,950 potential customer for the first year or 25 customers per day.
It is an announcement and a helpful instrument for organizations to report its money related execution in a specific timeframe (Quarterly or yearly). It is likewise valuable for the financial specialists to aid their capital venture choice process (Income Statement. 2013, May 24). The salary explanations as a rule comprise of the accompanying terms. It can be basic or exhaustive relying upon the organization.
Strategic planning is defined by intestorwords.com as the process of determining a company’s long-term goals and then identifying the best approach for achieving those goals. But this definition is too broad and does not identify the true advantages of strategic planning for large to small businesses. Strategic planning provides the foundation for the policies, procedures, and strategies for obtaining and using resources to obtain the goals of the organization. Some believe that in today’s rapidly changing environment, strategic planning is becoming more difficult and therefore more obsolete because changes are occurring so fast that plans-even those set for just months into the future-may soon be obsolete. The fact is that with the fast changing environment it is even more important to have strategic planning in every business today.
When Storm’s founder likened his model of financial planning to that of a Big Mac or a Ford production line, I think that he was referring to the quality of the products on offer. He is comparing his model of financial planning to the fact that people pay money for poor quality food and poor quality cars, just as they pay money for poor quality financial planning through Storm Financial. The Storm advisers breached their AFSL obligations because did not get to know their client. They offered the same advice to each of the clients, which resulted in great losses because they did not look at the needs of each individual client.
Strategic planning is done by the highest levels of an organization that goes threw three major phases. These phases include the formulation phase, the implementation phase and the evaluation phase. () These all play a great role for making the best possible way to carry out an action. The formulation phase is when a plan is initially developing and thought about as a way to help a business. The implementation phase is when the plan that was thought of is carried out. The evaluation phase goes over the success or failure of the plan and what could be changed and what shold have been done on the first place that could have helped the plan work. In order to come up with a plan, there must be a reason for it. This is known as the m...
What do you understand by the phrase “stakeholder analysis”? Attempt a stakeholder analysis of an organisation that you are closely associated with.
Strategic Management and Planning is a course of decisions and actions which ultimately lead to the development of a strategy to help a company achieve their objectives. Strategic planning focuses on the company’s long term range and how to accomplish what is laid out. Effective planning will help to prevent problems, provide a response if problems occur, and make available information and support needed to maintain public awareness, safety, and confidence.
A financial market is the place in which the buyers and sellers are able to trade on assets like stocks, bonds, and etc. The way that the finical market differs from the market for physical assets is that financial assets can be
I am currently majoring in Finance Management. Most of the time people think of finance as just managing money. However, finance is needed for so much more! The finance industry deals with starting businesses, developing new products, expanding markets, as well as everyday things like saving for retirement, purchasing a home, and even insurance. The stock market, asset allocation, portfolio analysis, and electronic commerce are all key aspects in finance. In this paper, I will explain how these features play a vital role in the industry, along with the issues that come with these factors.
The first function of management is planning. Planning is a process that managers use to identify and involve goal setting and decide the best way to achieve the goal.(Bartol 2007) Planning connect the gap between where we do, where we intend to go. It predict the possible things to happen which would not otherwise happen (MSG 2012). There are several steps to the planning process, which are determine the goals of the organisation, evaluate the current position, consider possible future conditions, identify possible alternative actions and choose the best. Planning is the criteria thinking through goals and making decision to achieve the goal of the organisation’s objective, which requires a systematic way. Also objectives focus the managers how to achieve the final result as managers have to predict anything will happen, avoid the problem and fight back to competitors. An example of planning, which is the President Canon Inc Tsuneji Uchida and lead Canon Company become the no.1 in the global business (Canon.Inc 2011). Tsuneji Uchida has to understand what is the company objective and goal. First, make decision to protect the position and the aim of canon, improve the operation more diversity. Second, he creates the new design of camera and new technology, he plan to do these things to maximise profit.
Strategic planning has a focus on stabilizing the current environment, and it also support the organization's business plans and goals. Strategic planning helps to implement new projects, new technology, consolidation of data centers, data warehouses, exponential data growth, cost of ownership, and resources available in an organization to assess the future requirements. Strategic planning analyzes the business plan, potential blockage or other issues in the current architecture, processes and their implementation in new initiatives, and processes. Strategic planning helps to formulate the ideas about the key factors that are affecting the present and future development of the organization and the opportunities offered by the environment and the competence of the organization.
Most critical to this discussion is a clear understanding of what a financial manager is and does and how his or her role aids in helping to establish the valuation of a corporate entity in today's global financial market. Quite simply, a financial manager helps to measure a company's market value and its risk while also helping to systematically reduce its costs and the time necessary to make informed decisions regarding objective driven operations. This is quite a demanding game plan for an individual and most often financial managers, in the corporate world, work in cooperation with a team of financial experts. Each member of that team perhaps having expertise in differing areas of activity, but each however, being no less expert in his or her respective area of endeavors in behalf of the corporation. The team is assembled under the direction of the officer know in the corporation as the Chief Financial Officer who today is becoming increasingly indispensable to the CEO who directs a modern model of action driven, bottom-line oriented corporate activity (Couto, Neilson, 2004). One can accurately state that the role of the competent and capable financial manager is figuratively worth its weight in gold.
A reflection of the work done to date in this course has given me much clarity on the goals that I wish to achieve in my life and the directions that I need to take to achieve them. In module three, I was able to start a financial planning process, in which I was able to determine my current financial situation concerning income, savings, living expenses, and debts through the utilization of a balance and income statement; financial objectives and personal goals sheet. I prepared a list of current asset and debt balances and amounts spent for various items providing me with a foundation for financial planning activities. In module Five, my financial process continued through the evaluation of a home affordability in which I used Maximum Mortgage